E.—l.

School Drill and Physical Exercises.—Drill is taught in nearly every school in the district, and, while in a few schools more might be done to comply with the regulations of the Board, generally an honest endeavour is made by both male and female teachers to give their pupils a good physical training. This district is fortunate in having among its teachers many who have had considerable experience in the New Zealand Volunteer Forces, and in all the larger schools the boys receive a good training in both military and physical drill. In six of the schools cadet companies have been formed, and under the system now being organized by Major Loveday it is expected that the boys in these schools will receive a thorough military training. While the boys are generally receiving efficient instruction in drill the girls are not being neglected, and it is pleasing to notice in many of our schools with what zeal both girls and boys go through their various exercises with and without wands, dumb-bells, and clubs. During the year a Conference of Education Boards was held at Wellington, the South Canterbury Board being represented by the Rev. George Barclay. The Conference afforded to the delegates from the various Boards of the colony an opportunity to interchange ideas, to discuss various questions affecting education, and to bring these questions and the financial needs of the Boards under the notice of the Government. I have, &c, The Hon. the Minister of Education, Wellington. Wμ. B. Howell, Chairman.

Geneeal Statement of Keceipts and Expenditure for the year ending 31st December, 1902. Receipts. £ s. d. Expenditiire. £ s. d. Credit balance at beginning of year— Office staff—Salaries and clerical assistance 322 7 6 On Building Account .. .. .. 1,339 1 3 Departmental contingencies .. .. 289 19 0 On General Account .. .. .. 373 11 5 Inspectors' salaries and travelling-expenses 975 0 0 Government grant for buildings .. .. 1,800 0 0 Truant officer's salary and expenses .. 86 16 0 Subscriptions and donations for buildings 27 9 9 Examination of pupil-teachers .. .. 26 4 1 Other receipts for buildings— Scholarships— Special Vote, Waihaorunga .. .. 323 0 0 Paid to scholars .. .. .. 319 17 5 Special Vote, Waihao Downs .. .. 250 0 0 Examination expenses .. .. 15 12 3 Sales—Rangitata Island, £102 7s. 6d.; Teachers'salaries .. .. .. 17,713 7 11 Winchester, £190 ss. ; Interest, £5 .. 297 12 6 Teachers' house allowances .. .. 226 13 4 Other grants from Government — Pupil-teachers' lodging allowances .. 14 6 8 Capitation for relieving-teachers .. 83 11 3 Incidental expenses of schools .. .. 1,074 1 6 Allowance, £250, and capitation at 11s. 3d. 2,754 5 5 School buildingsAddition to statutory capitation, 1901 508 7 6 New buildings .. .. .. 1,795 12 3 Salaries and allowances of teachers— Improvements of buildings .. .. 515 19 4 Net amount paid by Government .. 13,602 5 11 Furniture and appliances .. .. 197 13 11 Paid by school commissioners .. 3,143 17 7 Sites .. .. .. .. 91 17 6 Scholarship grant (5 quarters) .. 415 4 6 Plans, supervisions, and fees, Bank exDistrict High Schools— change, 10s. .. .. .. 283 12 0 Grants .. .. .. .. 82 10 0 Manual and technical instruction— Capitation .. .. .. 502 5 4 Salaries .. .. .. .. 46 13 0 Manual and technical instruction — Payments to committees .. .. 32 7 5 Capi'ation for— Capitation paid to managers of associated School classes .. .. .. 6 910 classes .. .. .. .. 106 14 9 Associated classes— Fitting up woodwork-room .. .. 15 0 8 Continuation .. .. .. 51 15 3 Apparatus .. .. .. .. 47 310 Manual and technical instruction 59 14 6 Material .. ~ .. .. 8 19 0 Grants for— Rent, woodwork-room .. .. 13 18 0 Apparatus .. .. .. 73 14 6 Incidentals .. .. .. .. 215 0 Material .. .. .. 812 0 Other expenses— Instruction of teachers .. .. 125 0 0 Exchanges and petties, £17 7s. od. ; Bank District High School fees .. .. 2 0 0 charge, 10s. .. .. .. 17 17 0 Other Receipts— Railage on South Kensington exhibits .. 19 2 Waimate High School Board contribution 60 0 0 Scho Is amateur athletic association .. 5 0 0 Greenhills contribution, £15 ; truancy fines, Expenses of member to Wellington to £2 Bs. od.; sale, stove, ss. .. .. 17 13 0 conference of Boards .. .. 10 0 0 Rents, £51 11s. 5d.; refunds, £35 2s. 4d. 86 13 9 Credit balance at end of year— On Building Account .. .. .. 267 8 6 On General Account .. .. .. 1,470 8 8 £25,994 15 3 £20,994 15 3 Wμ. B. Howell, Chairman. J. H. Bamfield, Secretary. Examined and found correct, except as to payments of £5 to the School Amateur Athletic Association and of £10 expenses of member to Wellington, for which there is no authority of law and which are therefore disallowed.— J. K. Warburton, Controller and Auditor-General.

OTAGO. Sir, — Education Office, Dunedin, 31st March, 1903. In accordance with the provisions of section 102 of " The Education Act, 1877," the Education Board of the District of Otago has the honour to submit the following report of its proceedings for the year 1902 : — Board. —At the commencement of the year the Board was composed of the following members: Rev. P. B. Fraser, M.A., Messrs. James Sim, Donald Boriie, William Snow, William Nicolson, Thomas Mackenzie, M.H.E., James Mitchell, Robert Peattie, M.A., and Alexander Marshall, B.A. Messrs. Borrie, Nicholson, and Snow, the retiring members, were re-elected in August. At the first meeting of the Board in September Mr, William Snow was elected chairman.

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